Management and Internal Control
“Management and Internal Control” Please respond to the following:
- Create a scenario where external auditors determined that a company’s internal controls were deficient, but such a deficiency might not mean that a material weakness existed. Ascertain the impact on the audit plan if additional deficiencies are discovered on other related internal controls. Support your position.
- From the e-Activity, identify the accounts that the fraud had affected, and analyze the auditor’s responsibility to detect fraud. Suggest key internal controls that would have either prevented or detected the fraudulent behavior or transactions. Justify your response.
The following deficiencies were determined after a successful evaluation of the sales and debtors internal control system. It was found out that the goods needed to be sold to a bad credit risk, sales can be invoiced but not recorded and goods can be dispatched without being involved.
The impact on the audit plan if additional deficiencies are discovered on other related internal controls include the fact that the auditor should consider…